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Lenskart (NSE:LENSKART) Delivers Margin Expansion, Analysts Maintain Positive Stance

Lenskart (NSE:LENSKART) Delivers Margin Expansion, Analysts Maintain Positive Stance

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Highlights

  • Lenskart Solutions Shares jumped 13.34% on 12 February 2026, followed by Q3 FY26 results.
  • JM Financial maintains a Buy rating with a target price of ₹565.
  • Q3 revenue surged 37.4% YoY to ₹2,303.7 crore, driven by volume growth.
  • EBITDA margin expanded sharply to 20.0% from 14.5% YoY.
  • PAT climbed 3.4x YoY to ₹132.7 crore in Q3 FY26.
  • 195 stores added in Q3; Gold members rose to 8.1 million.

Lenskart Solutions Ltd (NSE:LENSKART) shares jumped by 13.34% to ₹530 on 12 February 2026, followed by the release of company’s financial results for Q3 FY26 and 9M FY26.

JM Financial Institutional Securities reiterated Buy rating with a target price of ₹565. The brokerage stance comes alongside the company’s Q3 FY26 and 9M FY26 performance, which reflected accelerating scale benefits, margin expansion, and volume-led growth across India and international markets.

Q3 FY26: Revenue Momentum Meets Margin Expansion

For Q3 FY26, revenue from operations increased 37.4% YoY to ₹2,303.7 crore, primarily driven by volume expansion and new customer additions. India revenue grew 40.4% YoY, supported by favourable same-store momentum and catchment expansion.

Eyewear units sold grew 29.7% YoY, while 6.3 million eye tests were conducted during the quarter (+54% YoY). Notably, 49% were first-time eye exams, indicating market creation rather than redistribution.

Product margin remained favourable at 68.9%, aided by mix improvement and increasing premium lens adoption.

EBITDA rose to ₹462.4 crore, translating to a 20.0% EBITDA margin, up from 14.5% in Q3 FY25. The company attributed margin expansion to operating leverage from its vertically integrated, technology-led model, where fixed costs grow at a slower pace than revenue.

Profit after tax climbed to ₹132.7 crore, compared with ₹39.3 crore in Q3 FY25, reflecting revenue scale, product mix gains, and cost leverage.

9M FY26: International Momentum Lifts Earnings Profile

For the nine months ended FY26, revenue grew 29.4% YoY to ₹6,488.6 crore. EBITDA stood at ₹1,253.2 crore, with a margin of 19.3%, supported by structural unit economics improvement. PAT for 9M FY26 reached ₹326.4 crore, representing 2.4x growth compared to the previous year period.

International operations continued to outperform India’s historical profitability curve. The segment achieved a 6.1% pre-IndAS 116 EBITDA margin with 705 stores in 9M FY26 — higher than India’s margin at a comparable scale — supported by structurally higher product margins and disciplined execution.

Store Surge and Subscription Strength Power Growth Flywheel

Lenskart continued to scale aggressively during Q3 FY26, adding 195 net new stores in the quarter and taking total FY26 year-to-date additions to 420 outlets. The expansion was supported by data-driven site selection, enabling deeper penetration across existing and new catchments while limiting cannibalisation. The company’s Same Store Sales Growth (SSSG) stood at 27.8%, while Same Pincode Sales Growth (SPSG) came in higher at 35.8%, indicating incremental demand generation beyond mature locations.

Alongside physical expansion, the recurring revenue engine strengthened meaningfully. The Gold membership base increased to 8.1 million active members, with 37% of Q3 sales contributed by members acquired prior to the quarter. This highlight improving customer retention and a compounding revenue model, where repeat purchases and subscription-led engagement are becoming central to the company’s growth architecture.

Structural Market Opportunity

Management highlighted that India’s eyewear industry stands at approximately ₹79,000 crore today, with long-term projections pointing toward a ₹4,00,000+ crore opportunity by FY45, driven by rising refractive errors, penetration expansion, and premiumisation trends.

International markets represent a USD 19.1 billion opportunity (FY25), projected to reach USD 24.6 billion by FY30, with similar fragmentation characteristics as India.

Investor Takeaway

The reaffirmed Buy calls from JM Financial confidence at the centre of the investment narrative. With Q3 FY26 reflecting revenue acceleration, margin expansion, and sharp profit growth, investors are likely focusing on whether operating leverage and recurring Gold-led revenues continue to support earnings momentum. The broker stance, alongside expanding store footprint and international profitability gains, keeps attention on execution consistency and valuation upside implied by target prices.

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